The Euro Looks to Gain Some Ground after a Poor U.S. Durable Goods Report

EUR/USD (1.2486)

• Resistance Levels: 1.2535, 1.26, 1.2769
• Support Levels: 1.2360, 1.2210, 1.1975

The Euro is trying to bounce higher against the dollar today and should get a nice boost now that durable goods has come in lower than expected today. Durable goods contracted by 0.9 percent after coming in at -0.1 percent last month.

We have found solid support below the 1.24 handle. Please see the above daily MT 4 chart. Near term support is now at a cluster zone from 1.2354 to 1.2360. A break below that area, with daily close, challenges 1.2210. Should the recovery break above 1.25, then we will challenge 1.2535. A daily close above this level targets the next key technical level at 1.26.